Bitcoin exchange-traded products (ETPs) now collectively hold more than 1.47 million BTC, accounting for 7% of the cryptocurrency’s capped supply of 21 million coins.
US-based exchange-traded funds dominate the sector, with their combined holdings surpassing 1.29 million BTC across 11 funds as of Sunday, according to data shared by HODL15Capital.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) leads the group with 746,810 BTC, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC), which manages nearly 199,500 BTC.
Global ETPs added over 170,000 BTC between December 31, 2024, and the first day of September this year, worth roughly $18.7 billion at current market prices.
Inflows Show Signs of Slowing
While holdings remain substantial, momentum has cooled in recent weeks.
CoinShares reported that Bitcoin ETPs posted a net outflow of $301 million in August, even as Ethereum-based funds attracted inflows of $3.95 billion.
This divergence reflects a growing investor appetite for alternatives to Bitcoin, with Ether emerging as the most notable beneficiary.
Whale Activity Highlights Shift
One of the more striking developments came from whale trading activity this week.
On Monday, a Bitcoin whale converted 4,000 BTC into 96,859 Ether within just 12 hours.
That single trade left the whale with ETH holdings valued at $3.8 billion.
Blockchain intelligence firm Arkham revealed that nine whales in total have shifted $456 million from Bitcoin into Ethereum, underscoring a broader trend of capital rotation.
Market Context and Investor Hesitation
The slowdown in Bitcoin demand coincides with seasonal weakness.
September has historically been the cryptocurrency’s weakest month, and the current trend appears to be in line with that pattern.
Meanwhile, gold prices have climbed, further reducing Bitcoin’s appeal as a safe-haven alternative in the short term.
Another reason for investor caution is regulatory uncertainty.
As many as 92 crypto-related ETFs remain pending with the US Securities and Exchange Commission, including highly anticipated products tied to Solana (SOL) and XRP, both expected to receive rulings in October.
Analysts Weigh Long-Term Path
Despite short-term headwinds, some analysts maintain a bullish long-term view for Bitcoin, albeit with tempered expectations.
Pseudonymous analyst PlanC remarked, “Instead, we just keep grinding slowly upward to $1,000,000 over the next seven years in a very boring and underwhelming way.”
Meanwhile, Delphi Digital suggested that Bitcoin’s next major move could hinge on Federal Reserve policy.
According to the firm, if Bitcoin rises leading into a rate cut, it could rally sharply before experiencing a corrective crash afterward.
If momentum remains muted, however, the cryptocurrency may simply continue its gradual climb without major volatility.